#Liquidity101 What Is Liquidity in Crypto?
Liquidity refers to how quickly and easily an asset can be bought or sold without causing a big change in its price.
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High Liquidity =
✔️ Fast trades
✔️ Tight spreads
✔️ Stable prices
✔️ Low slippage
Low Liquidity =
⚠️ Slower trades
⚠️ Bigger price swings
⚠️ Higher slippage
⚠️ Less predictable markets
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Why It Matters:
When you’re trading crypto, especially large amounts, liquidity can save you money and reduce risk.
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Pro Tip:
Always check the trading volume and order book depth before entering a trade. High liquidity = safer exits!
